What happened that you probably didn’t know 🫠

The FBI recently launched a sting operation called “Operation Token Mirrors” to crack down on cryptocurrency fraud, using a fake token named NexFundAI

The FBI created this Ethereum-based token to expose fraudulent crypto practices, primarily targeting market manipulation and "wash trading."

This is the first criminal prosecution for market manipulation in the crypto industry.

During the operation, the FBI engaged with several fraudulent entities, including firms like ZM Quant

Gotbit and

MyTrade

which were involved in inflating token prices artificially through wash trading.

This tactic involves creating fake trading volumes to deceive investors into thinking a token is more valuable than it really is.

The FBI’s undercover token attracted these firms, allowing authorities to gather evidence of illegal activity. As a result, 18 individuals and companies were charged.